The Urban Health Protection System for China’s urban workers was established in the early 1950’s and contains two primary divisions. The two divisions are the Government Insurance Scheme or GIS and the Labor insurance Scheme or LIS. The Government Insurance Scheme covers government employees, retirees, disabled veterans, and university teachers and students. The Labor Insurance Scheme covers state enterprise employees, reti

rees and their dependents. Only enterprises owned and managed by central or provincial governments with less than 100 employees have the option not to participate in the health plan. The Smaller state enterprises and industries owned by county or town governments can provide LIS on a voluntary basis. Each year each participating state-owned enterprises contributes approximately 11-14% of total wages as a welfare fund to finance health expenditures incurred by beneficiaries for the LIS. Currently, health care is free to citizens in this category whenever they see a doctor, however they are actually paying for doctors in the form of taxes and not on a as needed basis. Additionally, registration fees, nutrient medicine fees and plastic surgery are not covered. This system is very similar to that of the United States (China Vista).

The total national income of hospitals in China in 1995 was approximately 6.89 billion. China’s Health Economy Network estimates that the tendency of national health expenditures will increase to 6.6 percent in 2020 from its level in 2000 of 4.1 percent. The World Bank estimates that the tendency of national health expenditures will increase to 7 percent by 2030(Fact Book).

Some of the major health issues facing China are very similar to those facing the United States. Village doctors are under-qualified to handle major illness and are giving injections, and prescriptions to those who don’t require them. Part of the reason for this is that doctors are not receiving enough training, and the other reason is much like the United States in that doctors receive specified

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